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Ofgem has proposed a £1 billion investment plan for a green energy grid in an attempt to combat climate change.

The money would be used to connect renewable energy sources, such as wind turbines, to the national grid.

Around 20 per cent of the money will go on an initial down payment on the investment. The rest will be used when a new set of regulatory controls come in during 2012.

Ofgem chief executive Alistair Buchanan said: "Ofgem has put forward a plan that could inject up to £1 billion into national electricity grid investment. This is needed urgently to handle growth in wind power and other renewable generation."

They said that the project will be designed so that it won't "expose consumers to unnecessary costs".

Currently only around six per cent of energy in the UK is generated by renewable sources but the target is for ten per cent by 2010.

Different companies generate different amounts of electricity from renewable sources and yougen.co.uk recommends comparing companies to see which have the best record.

Last week it was suggested by the London Assembly that using the capital's waste as a source of renewable energy could cut people's fuel bills.

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